Fundamental Methods of Mathematical EconomicsThe best-selling, best known text in Mathematical Economics course, Chiang teaches the basic mathematical methods indispensable for understanding current economic literature. The book's patient explanations are written in an informal, non-intimidating style. To underscore the relevance of mathematics to economics, the author allows the economist's analytical needs to motivate the study of related mathematical techniques; he then illustrates these techniques with appropriate economics models. Graphic illustrations often visually reinforce algebraic results. Many exercise problems serve as drills and help bolster student confidence. These major types of economic analysis are covered: statics, comparative statics, optimization problems, dynamics, and mathematical programming. These mathematical methods are introduced: matrix algebra, differential and integral calculus, differential equations, difference equations, and convex sets. |
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a₁ a₂ apply axis b₁ b₂ chain rule characteristic roots choice variables coefficient column comparative-static complementary function concave constant constraint convergence convex set Cramer's rule curve dēz defined definite denoted determinant diagram difference equation differential equation discussion dynamic economic elements equilibrium Example Exercise exponential exponential function expression extremum feasible region first-order condition given graph homogeneous identical indifference curve inequality input intertemporal equilibrium inverse isoquant Kuhn-Tucker linear program mathematical matrix maximization maximum minimum multiplier negative nonlinear nonlinear programming nonnegative objective function optimal solution output P₁ parameters partial derivatives particular integral path phase line polynomial positive problem quadratic quadratic form quasiconcave quasiconvex r₁ real numbers result rule satisfied scalar second-order condition second-order sufficient condition slope specific substitution symbol term theorem vector x₁ y₁ zero